Television industry leaders are optimistic the advertising dollars will start to flow again in 2021.
Advertising revenue for TV fell 35.6% in May, according to SMI figures. The decline, intensified by COVID-19, came despite an increase in audiences as people tuned in to keep up to date with the news, and keep entertained in their homes.
Seven West Media’s Natalie Harvey expects brands to have noted the channel’s importance in reaching and connecting with mass audiences, and expects 2021 to be about rebuilding.
“In 2020, television was elevated in terms of importance and ability to connect with customers quickly and I believe marketers have had a good reminder of just how strong broadcast and BVOD is,” she tells AdNews.
“I think we will see more brands evolve their use of broadcast and BVOD whether a more convergent way of trading across broadcast and BVOD or getting deeper into integration within engaging, authentic and powerful content.”
The industry is hopeful about BVOD in particular, which has been growing over the years, with 10 ViacomCBS’ Sophie Hicks Lloyd emphasising the improved targeting it will bring.
“With BVOD booming, 2021 will also bring massive growth in Connected TVs and targeted digital audience measurement,” Lloyd says.
“This will bring about precision targeting and personalisation. When Old El Paso targets me as a frequent Taco buyer (every Tuesday, FYI) they’ll have even more clever and creative ways to do this."
Predictions:
Nine director of sales, TV and radio Richard Hunwick
We see the two main trends of the past two years continuing and accelerating. Audiences returned to TV in force when COVID hit and clients have flocked back to “television”, both linear and BVOD in the final quarter of 2020, because it delivers meaningful, measurable results. “Total television” will remain the buzz word in 2021. And in a volatile market clients will look to stand out from the crowd by delivering integrated opportunities with key formats that work both in programme and in the break. Let’s not beat around the bush, COVID saw a delay to the launch of VOZ, but even without the robust cross screen measurement VOZ will deliver the move to “total television” accelerated in 2020 and with its launch, will accelerate further in 2021, as agencies look to consolidate their screens strategies. All of the networks have created ‘Digital destinations’ with their BVOD platforms that go well beyond the catch up services of 2-3 years ago and increases in Daily Active Users, and accurate measurement of the incremental reach they deliver to the linear offering, will drive further investment next year. More brands are reaching out than ever before to involve themselves with our content, but we have to be careful to balance brand involvement with viewer enjoyment. Our favourite new word of 2020 is ‘Outergration’ – we have demonstrated this year that the most powerful element of a sponsorship remains the in break 30 second ad spot, but enhancing its impact through use of IP, and its proximity to relevant, contextual integrated content is an area that will deliver stronger results for clients.
Richard Hunwick
10 ViacomCBS national sales director Lisa Squillace
With the challenges of 2020, we saw an opportunity for clients to reset, re-evaluate and reinvest into TV. 2021 will be a pivotal year where television will prove, once again, that it is the best way to capture mass audiences in a fragmented landscape. Demand will continue for TV advertising as television will be a big part of driving economic recovery and positivity. A number of key initiatives will be realised in 2021 which will demonstrate the reach and efficiency of TV and BVOD in combination, for high quality audiences who are not only entertained but take action.
Seven West Media network digital sales director Nicole Bence
We will continue to see growth of premium video consumption with more free and relevant content delivered to Australians. Digital TV will no longer be just about catch up, as we deliver more variety in content and genres like movies on the 7Plus platform. Coupled with increased audiences will come an increase in innovative advertising formats. At Seven we are investing heavily into a commerce eco-system which will leverage the smarts of digital and the engagement of television to enable brands to inspire and convert customers all in one experience. This year was about launching new data solutions such as 7Addressable and 2021 will see us scale our second-party data offering across connected TV via 7REDiQ. We believe more brands will activate people-based marketing strategies in 2021, with a greater demand for simplicity, speed and security providing alternative audience matching solutions to the walled gardens. As a result of increased focus on identity, we will see more brands working with trusted partners to effectively leverage their first party audience for better planning, smarter targeting and outcome-based measurement.
Foxtel Media CEO Mark Frain
In 2021, the triumvirate of advertiser, agency and publisher will all understand that all reach is not created equally, and we will see the start in a major evolution of how brands and clients plan and deliver on premium video. This will be driven by further proof around the importance of engagement and attention as key metrics when it comes to planning reach. Through 2020, BVOD proved itself as the growth-engine for viewing growth. As we move forward, this will continue – but it will also increasingly take premium linear TV on this growth journey. The other piece in the puzzle will be the rise of data and data accessibility for TV media planning, with publishers providing new tools and previously unimaginable depth of information to help with targeting. However, just like reach, not all data platforms will be created equally. 2021 will be a pivotal year for brands, agencies and media companies to separate the best from the rest.
Mark Frain
SBS director of media sales Adam Sadler
This year taught us to expect the unexpected, and we remain cautiously optimistic about the year ahead. As brands and sectors look to emerge from 2020, they will continue to contend with unpredictability, including the impact of broader economic and global factors. In this climate, consumers and brands will continue to turn to media they can trust. That commercial power of purpose has been key to our success in reaching more Australians than ever before this year. We expect to continue to see growth as audiences seek out a clear and compelling point of difference they can connect with, and as brands increasingly look to align with a trusted position in market. Marketing budgets will be under greater pressure, and it will be critical to have a deep understanding of your audience. What you’ll see from SBS is thought leadership equipping marketers with insights into contemporary Australia to give brands an edge, the ability to connect with a hard-to-reach audience, and a market-leading user experience backed by an effective data and technology offering meeting market expectations.
Seven West Media network sales director Natalie Harvey
It won’t be the same as 2020. I believe that 2021 could be an incredible year as we rebuild as an industry and a nation, together. Trusted B2B partnerships will be crucial in 2021 to unlock real business growth and the opportunity for brands to take a chunk of the domestic dollar will be significant. In 2020, television was elevated in terms of importance and ability to connect with customers quickly and I believe marketers have had a good reminder of just how strong broadcast and BVOD is. I think we will see more brands evolve their use of broadcast and BVOD whether a more convergent way of trading across broadcast and BVOD or getting deeper into integration within engaging, authentic and powerful content. We have seen a mini boom in the market for Q4 and there are some very strong and bright green shoots for 2021 so I think it will be a terrific year.
Foxtel Media executive director agency sales Nev Hasan
This year brought disruption, and with it, more consumption of news, entertainment and sports as consumers sought new forms of escapism. As the trend of digitisation accelerates in 2021, we will see an evolution in how people connect with media, and how this relationship powers advertising. With 83% of Australians now having access to Connected TV platforms, brands can increasingly access the opportunity to integrate both brand and sales into the advertising experience.
As advances in technology and evolving consumer habits converge, the challenge for publishers will be to offer multiple touchpoints within the same network. We’ll increasingly start to see brands capitalise on the new ability to talk to customers simultaneously across Connected TV, BVOD, linear and supporting digital channels. On top of these platforms, new layers of interactivity will power fresh opportunities in areas such as product discovery, lead generation and sales. Ultimately, 2021 will see brands explore innovation across the new face of TV, and develop a deeper connection with their customers.
10 ViacomCBS director of digital sales Sophie Hicks Lloyd
With BVOD booming, 2021 will also bring massive growth in Connected TVs and targeted digital audience measurement. This will bring about precision targeting and personalisation. When Old El Paso target me as a frequent Taco buyer (every Tuesday, FYI) they’ll have even more clever and creative ways to do this. Not only can they get their message in front of me via their Unpacked By Fly Buys 10Play partnership, but they’ll be able to offer personalised messages and offers to me via my weekly 10Play eDMs. They’ll know which 10 Play members buy Old El Paso taco kits versus those who buy the competition... and how many of them watch MasterChef too. At 10 ViacomCBS we are prioritising people over devices and in a privacy compliant way, we'll be working with our partners to reach people with persuasive crafted messages.
Sophie Hicks Lloyd
10 ViacomCBS general manager, data, insights and analytics Gareth Tomlin
2021 will be another year where insights will need to be at the forefront of media planning. Since that sad day when we heard the word “COVID-19” for the first time, we’ve lived in a world where media viewing habits have been shifting constantly. Hopefully, 2021 will be a happier year. But it will come with different challenges and shifts in viewing habits. In 2020, it was about panic, fear and lockdowns, on a state by state basis. In 2021, we’ll need insights on how viewing behaviour changes with gradual re-openings, vaccine roll-outs and the permanent shifts in home, office and school life in the post-vaccine world.
The 2021 shifts will be more positive, but will still require fast, actionable and reliable insights on these significant shifts in viewing behaviour. To forecast properly, we’ll all need more local and global insights to see the trends of a vaccinated world before they emerge.
Dugout APAC vice president James Peel
Streaming services have been prevalent in Australia for years (think the NBA’s League Pass platform), but against a backdrop of a pandemic, 2020 has seen the exponential growth of AVOD, SVOD & OTT video. It’s an indication how much consumers have migrated to these services that linear broadcasters such as Foxtel (KAYO), Bien (Connect) and the soon to be launched Stan Sports (Nine) have expanded their on-demand offerings to meet this trend. With a full live sports calendar resuming in 2021, many of these businesses will be looking to strike the balance between FTA advertiser funded content, versus what stays behind the paywall. As a result 2021 could be the first year where brands can access scalable CTV & OTT audiences in Australia.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.